"We certainly accept wrong decisions were made, but they were made because of a lack of appreciation of the significance of sexual abuse and its impact on people, on victims and their families.

"That's a very different thing from deliberately moving someone to avoid the situation. And that certainly is something that hasn't been part of the history for a long time."

Police say some church officials are guilty of alerting clergy suspected of abusing children that they may be under investigation.

"One instance of this occurred as recently as 2009," the report said.

"In this instance it was evident that by the time police had arrived, potential evidence was removed or destroyed."

The church's own complaints system, the Melbourne Response, also comes in for criticism.

The police report says the methods used by the church's lead investigator, Peter O'Callaghan QC, have effectively dissuaded victims from reporting abuse to authorities.

"The inquiry process restricts the ability of victims to have the offender brought to account through the criminal justice system and promotes a culture of secrecy which prevents more victims speaking out," it said.

But Father MacKinlay says the church has always encouraged victims to report to police.

"There is a clear and consistent and strong encouragement of victims to go to the police," he said.

"[And] support is provided for them in doing that and ongoing support and counselling is provided during that time."

Mr O'Callaghan has issued a brief written statement, refuting the allegations.

"There is much in the police submission which is seriously misconceived and plainly wrong and which I will correct and refute in my submission," he said.

Victims' advocate Bryan Keon-Cohen QC believes it is the first time Victoria Police has given such a detailed public condemnation of the church's conduct.

"The church has systematically considered its own interests first - the protection of offending priests, the reputation of offending priests and the protection of its property ahead of all other interests of the victim," he said.

The extent of child sexual abuse within the Catholic Church became clearer last month.

The church admitted 620 complaints against Catholic clergy or staff had been upheld by its own investigations.

Public hearings for the inquiry begin next week and the inquiry committee is due to hand down its report in April next year.